Exclusive behind the deal: Anchor tenants named, ground ready to break on $72M Northside Square

By Stephen MacLeod – Reporter, Memphis Business Journal

November 13, 2023

The team behind Northside Square is betting big on Klondike, a North Memphis submarket often overlooked by investors.

The redevelopment of the former Northside High School at 1212 Vollintine Ave. has been in the works for five years, with groundbreaking scheduled for Dec. 8.

Northside Square is nearly fully pre-leased, with most of its more than 200,000 square feet of commercial space already committed ahead of opening. Tenants include Muggin’ Coffeehouse’s third location, a new home for the Memphis Symphony Orchestra, and Moore Tech’s fourth campus.

The $72 million project is expected to serve as a transformational anchor for the neighborhood. It includes a 40% minority- and women-owned business enterprise (MWBE) participation rate and will bring affordable housing to the Memphis market, with developers hoping for broader ripple effects.

The project team includes architect LRK and contractor Grinder, Taber & Grinder, alongside minority-owned firms such as Aaron Patrick Architects.

Housing units will be priced at or below 80% of the area median income, with a portion at the 50% level. The development is also notable as one of the largest Black-led projects in a historically Black Memphis neighborhood.

The development is led by The Works Inc., a Memphis nonprofit focused on affordable housing that will own and operate the project, and ComCap Partners, which is leading development and construction.

Preserving history while building something new

Archie Willis III, founder and president of ComCap, joked about the challenges of repurposing a former high school.

“Don’t develop a former high school,” Willis said with a laugh.

When the building was vacated after Northside High closed in 2016, much of its contents — from band equipment to textbooks — was left behind. Even years later, remnants of the school’s past remain throughout the building.

The development team plans to preserve that history. The school’s orange and blue colors will be incorporated into the design, azalea trees in the courtyard will be maintained, and the original front sign will be restored.

Plans also include a Hall of Fame space featuring trophies and memorabilia, developed in partnership with alumni.

“We knew we needed to honor the history and legacy of Northside,” said Alexandra Willis Boddie, vice president of development at ComCap. “We’re working closely with alumni to help program that space.”

Commercial space

The full development will total about 270,000 square feet, including roughly 209,000 square feet of commercial space across three floors. About 90% of that space has already been leased.

The basement, once used for vocational training, will again serve that purpose with Moore Tech as the largest tenant.

The first floor will feature a central corridor and restored atrium with an amphitheater for public events and performances. A food hall concept will anchor part of the space, with Muggin’ Coffeehouse among the tenants.

The Memphis Symphony Orchestra will also relocate to the development, drawn in part by the acoustics of the restored performance space.

Education-focused tenants will occupy the second floor, including Literacy Mid-South and Goodwill Excel, which provide adult education and workforce development.

Financing and tax structure

To make the project financially viable, the development is divided into four separate “condos” for tax purposes. Several portions — including performing arts, education, and gym spaces — qualify as tax-exempt.

Residential space, which does not qualify for certain tax credits, is structured separately.

Despite these exemptions, the project will still contribute to local tax rolls. The site, originally built as a public school in 1966, was previously tax-exempt.

Residential component

Northside Square will include 42 affordable housing units, all priced at or below 80% of area median income, with a portion at 50%.

Located on the third floor, the units will include studio, one-bedroom, and two-bedroom options. The residential component is designed to bring consistent activity and foot traffic to the development.

Broader vision for Klondike

The Works envisions Northside Square as part of a larger strategy for neighborhood revitalization and economic mobility.

Plans include a community land trust to help residents transition from renting to homeownership, as well as a proposed green lumber biomass business to create jobs nearby.

The organization is also working with local agencies to improve walkability and bike access, positioning Northside Square as a central hub for commerce and community activity.